Business Plan for Discount Retail Store in Australia

This business plan presents the idea of a discount retail store in the Australian market. It includes market analysis, business model, feasibility analysis, and target market. The aim is to offer products at affordable prices and compete with big players like ALDI.

Running head: BUSINESS PLAN
Entrepreneurship
The Retail Discount Store

BUSINESS PLAN 1
Table of Contents
Introduction................................................................................................................................2
Background Of the business idea...........................................................................................2
Objectives...............................................................................................................................2
Mission...................................................................................................................................3
Feasibility Analysis................................................................................................................3
Technological Feasibility...................................................................................................3
Legal Feasibility.................................................................................................................3
Financial Feasibility...........................................................................................................3
Business Model Canvas.........................................................................................................4
Products..................................................................................................................................4
Market Analysis.....................................................................................................................4
Pest Analysis......................................................................................................................4
Market segmentation and Target market................................................................................5
Sales Pitch for Discount Retail Store.....................................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................8

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Introduction
The aim of this report is to present a business plan for the Discount retail store in the
Australian market. A business plan is the theoretical presentation of the idea, thoughts, and
perception about a plan that can attain success in the future (Schramm, 2018). The plan
represents different important aspects such as market analysis, business model, feasibility
analysis, the target market of the presented idea. This report will majorly focus on all these
aspects of the business idea of the Discount retail store.
Background Of the business idea
The business idea of the Discount retail store has been named as Remise store. It is a start-up
plan that will be established in the Australian market that will offer an interesting product
range at bargain prices. The business will raise the fund with the help of financial institutions.
Four colleagues i.e. Daniel, Chris, Loris, and Revin of one of the Australian supermarket will
have the ownership of the store.
Objectives
The objective to initiate a discount store i.e. Remise Store in the Australian market is to offer
products at affordable prices. There is huge competition in the Australian retail and
supermarket industry, which is affecting the business operations of different supermarkets
and big retail stores (IBIS World, 2018). However, ALDI is one of the players who has
adopted the Cost leadership strategy in order to offer products at low price (Coriolis
Consulting, 2017). Therefore, Remise store wants to compete with ALDI to eliminate its
dominance and focus on customer service in the market.

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Mission
The Mission of Remise Store is to offer a different range of interesting products at reasonable
prices. It will be focused towards offering effective customer service and for this, it will offer
its customers the different type of services that is reverent and prompt.
Feasibility Analysis
A feasibility study is an analysis that is used to evaluate the competencies to accomplish a
project or task comprising every important element (Moghl, 2018).
Technological Feasibility
Technology has an essential influence on the operations of the business. The size of the
business is not important, technology has intangible and tangible reimbursements that support
to make money and meet the demands of the customers (Gattiker & Stollemmaier, 2012).
Remise store will be comprised of different techniques for managing the stock and sales of
products.
Legal Feasibility
Remise will look after the rules and regulations framed by the government in the Australian
retailing and supermarket industry. The government has introduced different policies to
reduce the dominance of big stores and supermarkets such as ALDI, Woolworths, and Coles
(Australian Government, 2017). The Remise will consider these policies and will try to
maintain the profit margin of small retailers.
Financial Feasibility
Financial feasibility is one of the important aspects that need to be checked by the business
while performing activities in a market (Gibson, 2010). The Remise Store will arrange the
funds from financial institutions in order to invest in the purchase of stock.

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Business Model Canvas
Key Partners
 Distributor
s
 C&F
Agent
 Wholesaler
s
Key Activities
 Sell products
 Managing
competitive
prices
 Maintaining
relationship
with
customers
and
suppliers
 Customer
support
Value
Proposition
 Low price
 Touch and
feel the
product
quality
 Long-
Standing
Credit
Customer
Relationship
 Offering credit
to the
customers
 Personal
assistance
Customer
Segments
 Shopper-
centric
 Cost Oriented
 Mass Market
Key Resources
 Store
 Families
 Product
Channels
 Traditional
retailers
 Stalls
Cost Structure
 Operation
cost
 Wages
 Product
Purchase
Revenue Streams
 Product Sales
Products
Remise Stores will vend variety of products at discounted rates. The types of products it will
deliver comprise household goods, candy, dishware, cosmetics, greeting cards, toys, etc.
Market Analysis
Pest Analysis
Political
The political factors such as regulations and policies of the government of the industry of
retail influence its profitability and revenue. The Australian federal government has

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introduced a policy, which works to prevent the retail stores from big players such as
Woolworths and Coles (Act Government, 2018).
Economic
A drop in the economic conditions across Australia has influenced the profitability of retail
players in the market (Scutt, 2017). In order to survive in the market Remise need to frame
strategies that can maintain its profit margin.
Social
The social factors also influence the retail industry of Australia, hence Remise Store needs to
be social awareness and contribute towards the development of the society.
Technology
The retail industry of Australia is getting affected due to the advancement in the
technological sector (S&P, 2017). Therefore, Remise Store will invest maximum of its fund
in implementing advanced technology in its stores.
Market segmentation and Target market
Segmentation means dividing the entire market into different portions depending on diverse
criteria such as demographic, psychographic, behavioral, and geographic segmentation
(McDonald, 2012).
In the initial stage, the company will focus on the demographic segment and will try to offer
products to all type of age groups and gender. Moreover, the Australian market is full of big
players that mostly neglect the lower class people, who cannot afford to visit such
supermarket. Hence, business has decided to target that group to offer them standard products
at low cost.

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Targeting is comprised of recognizing the segment of the market by the business and thus
providing services to that specific segment (Weinstein, 2013).
Segmentation Target A Target B
Demographic
Segmentation
For low income
sector
All the age groups
Sales Pitch for Discount Retail Store
The idea here is to position Remise as the discounted retail store and stand out in targeting
the bottom of Pyramid. Australia with a population of over 25.3 million mostly shops in high-
end supermarkets such as Aldi, Coles, Woolworths and others. This is hampering the
business of smaller retail stores, which are there to serve the needs of lower sections of
society. Remise by launching its Discounted retail store will create a disruption in the
existing retail market and will first tap the overlooked target audience, which is the lower and
lower middle income range people. These people have been overlooked by these
supermarkets for a long time, and Remise retail discounted store has been set up to bring a
change in their shopping habits and to provide them value of money, in the form of
discounted pricing. This would in turn lead to gaining a hold of the bottom of the pyramid,
and place itself in the league where all the magic happens.
Conclusion
From the above analysis, it could be concluded that the Remise Store will be considered as
one of the successful retail stores in the Australian retail industry. Considering the economic
conditions (economic-crisis) in the market, it is a good idea to offer products at discounted or

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bargain price. The Australian market is very competitive so the company will have to face
some hurdles in its way but with effective strategies, it could gain a good market share.

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References
Act Government. (2018). Act Supermarket Competition Policy Implementation Plan.
Retrieved from
https://www.parliament.act.gov.au/__data/assets/pdf_file/0007/375037/
ACT_SCP_Plan.pdf
Australian Government. (2017). Australian Government Response to the Competition Policy
Review. Retrieved from
https://static.treasury.gov.au/uploads/sites/1/2017/06/Govt_response_CPR.pdf
Coriolis Consulting. (2017). Supermarket wars: The ALDI Approach. Retrieved from
http://coriolisconsulting.com.au/supermarket-wars-aldi-approach/
Gattiker, U.E., & Stollemmaier, R.S. (2012). Technology-Mediated Communication 2nd ed.
Germany: Walter de Gruyter.
Gibson, C.H. (2010). Financial Reporting and Analysis: Using Financial Accounting
Information 12th ed. U.S: Cengage Learning.
IBIS World. (2018). Supermarkets and Grocery Stores - Australia Market Research Report.
Retrieved from https://www.ibisworld.com.au/industry-trends/market-research-
reports/retail-trade/food-retailing/supermarkets-grocery-stores.html
McDonald, M. (2012). Market Segmentation: How to Do It and How to Profit from It 3rd ed.
U.S: John Wiley & Sons.
Moghl, A.A.A. (2018). Market Analysis And The Feasibility Of Establishing Small
Businesses. European Scientific Journal, 8(9), 94-113.

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S&P. (2017). Woolworths Limited SWOT & PESTLE Analysis. Retrieved from,
https://www.swotandpestle.com/woolworths-limited/
Schramm, C.J. (2018). Burn The Business Plan: What Great Entrepreneurs Really Do 1st ed.
U.K: Hachette.
Scutt, D. (2017). Australia's retail and construction sectors are facing headwinds that could
slow the entire economy. Retrieved from
https://www.businessinsider.com.au/australias-retail-and-construction-sectors-are-
facing-headwinds-that-could-slow-the-entire-economy-2017-6
Weinstein, A. (2013). Handbook of Market Segmentation: Strategic Targeting for Business
and Technology Firms 3rd ed. U.S: Routledge.